Exhibit 99.2
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RETIREMENT CENTER COMMUNITIES - SECOND QUARTER 2005
($'s in thousands)
RETIREMENT CENTER COMMUNITIES: TOTAL
-------------------------------------
Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05
-------- -------- -------- -------- -------- --------
Resident and healthcare revenue $85,288 $85,578 $86,526 $89,787 $91,482 $93,794
Community operating expense 56,791 56,546 58,168 59,085 60,890 61,869
------- ------- ------- ------- ------- -------
Community operating contribution 28,497 29,032 28,358 30,702 30,592 31,925
Community operating margin 33.4% 33.9% 32.8% 34.2% 33.4% 34.0%
Community operating contribution excluding
Amortization of Deferred Entrance Fee Revenue 25,832 26,592 26,249 27,553 28,357 29,226
Ending Occupancy 8,374 8,424 8,436 8,482 8,585 8,567
Ending Occupancy % 94.4% 95.0% 95.1% 95.7% 94.6% 94.8%
Average Monthly Occupancy 8,376 8,382 8,408 8,438 8,532 8,572
Monthly Revenue per unit $ 3,394 $ 3,403 $ 3,430 $ 3,547 $ 3,574 $ 3,647
Year to Year % Change 8.0% 6.3% 5.0% 9.8% 5.3% 7.2%
Monthly Operating Contribution per unit 1,134 1,155 1,124 1,213 1,195 1,241
Year to Year % Change 13.0% 12.4% 14.2% 16.2% 5.4% 7.5%
RETIREMENT CENTER COMMUNITIES: RENTAL COMMUNITIES
--------------------------------------------------
Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05
-------- -------- -------- -------- -------- --------
Resident and healthcare revenue $55,007 $55,249 $56,306 $57,387 $58,493 $59,919
Community operating expense 34,326 33,983 35,422 35,932 36,739 37,259
------- ------- ------- ------- ------- -------
Community operating contribution 20,681 21,266 20,884 21,455 21,754 22,660
Community operating margin 37.6% 38.5% 37.1% 37.4% 37.2% 37.8%
Ending Occupancy 5,576 5,595 5,581 5,623 5,586 5,597
Ending Occupancy % 95.2% 95.5% 95.2% 96.0% 95.4% 95.7%
Average Monthly Occupancy 5,582 5,576 5,580 5,594 5,602 5,596
Monthly Revenue per unit $ 3,285 $ 3,303 $ 3,364 $ 3,420 $ 3,480 $ 3,569
Year to Year % Change 7.5% 6.5% 4.5% 9.0% 5.9% 8.1%
Monthly Operating Contribution per unit 1,235 1,271 1,248 1,278 1,294 1,350
Year to Year % Change 11.2% 11.8% 10.3% 7.4% 4.8% 6.2%
RETIREMENT CENTER COMMUNITIES: ENTRANCE FEE CCRCs
--------------------------------------------------
Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05
-------- -------- -------- -------- -------- --------
Resident and healthcare revenue $30,281 $30,329 $30,220 $32,400 $32,989 $33,875
Community operating expense 22,465 22,563 22,746 23,153 24,151 24,610
------- ------- ------- ------- ------- -------
Community operating contribution 7,816 7,766 7,474 9,247 8,838 9,265
Community operating margin 25.8% 25.6% 24.7% 28.5% 26.8% 27.4%
Ending Occupancy 2,798 2,829 2,855 2,859 2,999 2,970
Ending Occupancy % 93.0% 94.0% 94.8% 95.0% 93.3% 93.2%
Average Monthly Occupancy 2,795 2,806 2,828 2,844 2,930 2,976
Monthly Revenue per unit $ 3,612 $ 3,603 $ 3,562 $ 3,797 $ 3,753 $ 3,794
Year to Year % Change 9.2% 6.1% 5.9% 11.0% 3.9% 5.3%
Monthly Operating Contribution per unit 932 923 881 1,084 1,005 1,038
Year to Year % Change 17.3% 13.0% 25.4% 45.0% 7.9% 12.5%
Net Cash Flow per unit (includes Net Resale Cash Flow) 1,326 1,503 1,442 1,217 1,397 1,551
Entrance Fee Sales:
Total Entrance Fee (Independent Living) Units 2,066 2,066 2,066 2,064 2,217 2,213
Ending Occupancy % 95.4% 96.3% 97.1% 97.2% 95.8% 95.6%
Entrance Fee Sales (in units) 69 84 79 68 70 81
Entrance Fee Sales $10,257 $11,976 $11,931 $ 9,224 $11,589 $14,271
Refunds paid on Entrance Fee Terminations 2,433 2,868 3,181 3,192 4,137 5,293
Net Resale Cash Flow 7,824 9,108 8,750 6,032 7,452 8,978
NOTE: The sales proceeds at entrance fee CCRCs provide a source of financing to
the community, thereby reducing the financing costs (interest or lease expense)
that it would otherwise incur. As a result of the residents paying an up-front
entrance fee, they pay a lower monthly service fee than they would pay at a
similar rental community without entrance fees. As a result, entrance fee
communities have lower operating margins (but lower non-operating financing
costs) than similar rental communities.
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
FREE-STANDING ASSISTED LIVING COMMUNITIES - SECOND QUARTER 2005
($'s in thousands)
FREE-STANDING ASSISTED LIVING COMMUNITIES
-----------------------------------------
Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05
--------- ---------- ---------- --------- ---------- -----------
Resident and healthcare revenue $22,663 $ 23,532 $ 24,563 $25,506 $ 26,207 $ 26,847
Community operating expense 17,061 17,519 17,657 17,970 18,447 18,027
------- -------- -------- ------- -------- ---------
Community operating contribution 5,602 6,013 6,906 7,536 7,760 8,820
Community operating margin 24.7% 25.6% 28.1% 29.5% 29.6% 32.9%
Ending Occupancy 2,394 2,456 2,504 2,533 2,562 2,561
Ending Occupancy % 84.3% 86.5% 88.3% 89.3% 90.1% 89.9%
Average Monthly Occupancy 2,384 2,430 2,478 2,521 2,537 2,557
Monthly Revenue per unit $ 3,169 $ 3,228 $ 3,304 $ 3,372 $ 3,443 $ 3,500
Year to Year % Change 8.7% 7.5% 8.2% 9.9% 8.7% 8.4%
Monthly Operating Contribution per
unit 783 825 929 996 1,020 1,150
Year to Year % Change 78.5% 46.3% 39.2% 37.3% 30.2% 39.4%
NOTE: Excludes two non-consolidated joint ventures.
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
INNOVATIVE SENIOR CARE / THERAPY
SECOND QUARTER 2006
($'s in thousands)
Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05
---------- ---------- -------- -------- ---------- ----------
Revenues $8,781 $9,207 $9,970 $10,902 $11,745 $12,504
Therapy clinics 81 87 93 96 107 115
Outside clinics (included in above
totals) 12 17 23 25 34 41
Therapy staff
Full time 248 280 338 354 369 418
Part time 201 205 232 225 208 209
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
SAME COMMUNITY RESULTS - SECOND QUARTER 2005
($'s in thousands)
INCLUDING ENTRANCE FEE COMMUNITIES:
- ------------------------------------
Three months ended June 30 $ %
-------------------------------
2005 2004 Change Change
------------ ------------ ----------- ------------
Resident & Healthcare revenue $ 119,442 $ 109,110 $ 10,332 9.5%
Community operating expense 78,666 74,065 4,601 6.2%
------------ ------------ -------- ------------
Community operating contribution $ 40,776 $ 35,045 5,731 16.4%
Community operating margin 34.1% 32.1%
# Locations 59 59
Avg. Occupancy 93.8% 92.3%
Avg. Occupied Units 10,974 10,812 162 1.5%
Avg. Mo. Revenue/unit $ 3,628 $ 3,364 $ 264 7.9%
Avg. Mo. Operating Contribution/unit 1,239 1,080 158 14.6%
EXCLUDING ENTRANCE FEE COMMUNITIES:
- ------------------------------------
Three months ended June 30 $ %
-------------------------------
2005 2004 Change Change
------------ ------------ ----------- ------------
Resident & Healthcare revenue $ 86,766 78,781 $ 7,985 10.1%
Community operating expense 55,286 51,502 3,784 7.3%
------------ ------------ -------- ------------
Community operating contribution $ 31,480 $ 27,279 4,201 15.4%
Community operating margin 36.3% 34.6%
# Locations 53 53
Avg. Occupancy 93.7% 92.0%
Avg. Occupied Units 8,153 8,006 147 1.8%
Avg. Mo. Revenue/unit $ 3,547 $ 3,280 $ 267 8.1%
Avg. Mo. Operating Contribution/unit 1,287 1,136 151 13.3%
* This table sets forth certain selected financial and operating data on a Same
Community basis. "Same Community basis" refers to communities that were owned
and/or leased by the company throughout each of the periods being compared.
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
REVENUE - SECOND QUARTER 2005
($'s in thousands)
Three months ended June 30, Three months ended June 30,
--------------------------------------------------------------
2005 % 2004 %
---------- ---------- ---------- ----------
COMPOSITION
- -----------
Revenues:
Retirement Centers
Independent living $ 39,029 32.0% $ 36,171 32.8%
Assisted living 15,150 12.4% 14,337 13.0%
Skilled Nursing 20,392 16.8% 19,071 17.3%
Ancillary services, including Innovative
Senior Care (therapy and wellness
programs) 16,524 13.6% 13,559 12.3%
Amortization of Deferred Entrance Fee
Revenue 2,699 2.2% 2,440 2.3%
---------- ---------- ---------- ----------
93,794 77.0% 85,578 77.7%
Free-Standing Assisted Living
Assisted living 23,658 19.4% 21,152 19.2%
Ancillary services, including Innovative
Senior Care (therapy and wellness
programs) 3,189 2.7% 2,380 2.2%
---------- ---------- ---------- ----------
26,847 22.1% 23,532 21.4%
Total Resident and Healthcare Revenue 120,641 99.1% 109,110 99.1%
Management and Contract Services 516 0.5% 515 0.5%
Reimbursed Expenses 542 0.4% 524 0.4%
---------- ---------- ---------- ----------
1,058 0.9% 1,039 0.9%
---------- ---------- ---------- ----------
Total Revenues $ 121,699 100.0% $ 110,149 100.0%
BY PAYOR
- --------
Private Pay $ 101,852 83.7% $ 93,907 85.3%
Medicare 17,532 14.4% 13,487 12.2%
Medicaid 2,315 1.9% 2,755 2.5%
---------- ---------- ---------- ----------
Total $ 121,699 100.0% $ 110,149 100.0%
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
OTHER STATISTICS - SECOND QUARTER 2005
UNIT CAPACITY BY COMMUNITY TYPE
- -------------------------------
At June 30, 2005
---------------------
Locations Capacity
--------- ----------
Rental Retirement Centers:
Owned-100% 2 272
Leased 20 5,579
Managed - other 3 682
--------- ----------
25 6,533
Entrance Fee Retirement Centers:
Owned-100% 3 918
Owned- 90% - -
Leased 3 1,529
Managed-Freedom Square 1 739
Managed-other 2 506
--------- ----------
9 3,692
Free-Standing AL's:
Owned-100% 10 898
Owned-Joint Venture 2 163
Leased 20 1,859
Leased-Joint Venture 1 92
--------- ----------
33 3,012
All Communities:
Owned-100% 15 2,088
Owned- 90% - -
Owned-Joint Venture 2 163
Leased 43 8,967
Leased-Joint Venture 1 92
Managed-Freedom Square 1 739
Managed-other 5 1,188
--------- ----------
67 13,237
Note: Leased communities include both operating and capital leases. The two
Owned-Joint Ventures are managed and are not consolidated. Freedom Square is
consolidated due to the variable interest entity rules set forth in FIN 46.